GBPUSD Technical Analysis – Key levels in play | Forexlive

USD

• The Fed left interest rates unchanged as
  expected at the last meeting while dropping the tightening bias in the
  statement but adding a slight pushback against a March rate cut.
• The US CPI beat
  expectations for the second consecutive month with the disinflationary trend
  reversing.
• The US PPI beat
  expectations across the board by a big margin.
• The US Jobless Claims beat
  expectations with the data remaining steady.
• The latest US PMIs
  increased further from the prior month with the Manufacturing PMI beating
  expectations and the Services PMI missing.
• The US Retail Sales missed
  expectations across the board by a big margin.
• The market now expects the first rate cut in June.

GBP

• The BoE left interest rates unchanged as expected at the last meeting
  removing the tightening bias but reaffirming that they will keep rates high for
  sufficiently long to return to the 2% target.
• The employment report beat expectations across the board
  with a positive revision to the December’s negative payroll figure.
• The UK CPI missed expectations across the board but with
  Services inflation remaining sticky, which continues to support the BoE’s
  patient stance.
• The latest UK PMIs improved from the prior month with the
  Services PMI beating expectations and the Manufacturing PMI missing.
• The latest UK Retail Sales beat expectations across the board
  by a big margin.
• The market expects the first rate
  cut in June.

GBPUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that GBPUSD continues
to range but the price action lately has been pointing to a rally into the 1.28
resistance zone as
the pair has been printing higher highs and higher lows. The recent break above
the red 21 moving average
reinforced further such a move as the sellers have no other key level to lean
on at this point.

GBPUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that we got a
strong rejection from the US CPI high around the 1.2685 level but the price
bounced back from the trendline and the
red 21 moving average as the buyers piled in with a better risk to reward
setup. The sellers will need the price to break below the trendline to gain
more conviction and position for a drop back into the lows.

GBPUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with the strong rejection from the 1.2685 level
and the bounce on the trendline. There’s not much to do here given that the
price is now trading right in the middle of the key levels. If the price were
to break the resistance, we can expect the buyers to increase the bullish bets
into the 1.28 handle while the sellers will likely try to defend the level once
again.